Create a Cash Receipt and Cash Receipt Application

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Create a Cash Receipt and Cash Receipt Application

The following section describes how to make payments from cash receipts toward repayment of various loans of a borrower. You can make a payment by creating a cash receipt.

Payments Using Cash Receipts

Prerequisites

The following are the prerequisites to make a payment using cash receipt:

  • The Enable Cash Receipts checkbox in the Custom Settings > CL Platform Settings is enabled.

  • A payment spread is defined and is associated with the account or the contact.

Steps

Perform the following steps to make a payment using cash receipt:

  1. Define a payment spread.

  2. Create a cash receipt.

  3. Create a payment application.

Define a Payment Spread

You must associate a payment spread with a borrower. The associated payment spread decides the order in which all the dues of a borrower are listed, but the order of payment depends on the payment methodology selected (auto allocate or manual allocate).

Note:

To know about the different payment methods, see Create a Cash Receipt and Payment Application#Payment Methodologies.

Steps

Perform the following steps to define a payment spread:

  1. Log in to your Salesforce account.

  2. Click Service Configuration.

  3. Go to Misc., Payment Spread.., and New Payment Spread.

  4. Specify a Spread Name to easily identify the spread for use. For example, Protect Spread, or Investors Spread. The Balance Type field displays the list of charges you can select from.

  5. In the Balance Type field, select the charges in the order in which you want to include these in the spread. You can add multiple balance types by clicking the  icon. The balance types are ordered in the sequence of creation.

  6. Click Save to define the payment spread. The Loan Payment Spread displays the list of spreads, default and user-defined, that are available in the system. 

Note:

For more information on defining new payment spread, see Defining New Payment Spread section in CL Loan Administration Guide.

Create a Cash Receipt

A cash receipt is to be created at the borrower's level. A payment made by the borrower first reflects in a cash receipt. 

In the following example, seven payments are made by the account (borrower) named account simple. Cash receipts corresponding to each payment made are created by the user reflecting the received amount (Receipt Amount) and the amount remaining after satisfying the dues (Unapplied Amount). When a cash receipt is not applied, the Receipt Amount = Unapplied Amount.

Prerequisites

The following is the prerequisite to create a cash receipt:

Payment spread to be associated with the cash receipt is defined.

Note:

For more information on defining a payment spread, see Define a payment spread.

Steps

Perform the following steps to create a cash receipt:

  1. Log in to your Salesforce account.

  2. In the(App Launcher), search for Cash Receipts, and click it.

  3. On the Cash Receipts page, click New.

  4. In the New Cash Receipt window, select Cash Receipt.

  5. Click Next.

  6. In the Edit Cash Receipt window, specify the details as described in the following table:

    Field Name

    Description
    Account The account (borrower) who has made the payment.
    Contact The contact (borrower) who has made the payment.
    Receipt Amount

    The payment received from the borrower.
    Received Date The date on which the payment was received. This can be the check date or the transfer date.
    Payment Mode

    The mode of the payment made:

    • Cash

    • ACH

  7. Click Save Cash Receipt.

    Note:

    You can also create cash receipts from the Cash Receipt section on the account or the contact page.

Create a Payment Application

From the amount received in a cash receipt, multiple payments can be made until the available amount gets exhausted. For each payment, a payment application is created so multiple payment applications can be created from one cash receipt. Each payment application is used to make a payment for the amount less than or equal to what is available in the cash receipt. This is called applying a payment application. The amount remaining after applying is the unused amount and is used to create the next payment application.

Example

As shown in the following image, the user has created four payment applications to make made four payments from the cash receipt (CRT-0000000040). All the payment applications that are created are listed in the Payment Applications section.

Prerequisites

The following are the prerequisites to create a payment application:

  • A cash receipt for the payment made is created.

    Note:

    To know about how to create a cash receipt, refer to Create a Cash Receipt and Payment Application#Create a Cash Receipt.

  • There is some unapplied amount in the cash receipt.

Steps 

Perform the following steps to create a payment application:

  1. Click on the cash receipt from which the payment has to be made.

  2. Scroll down to Payment Applications section, click New Payment Application.The New Payment Application page is displayed with the sections and their details described in the following table:

    Field Name Description

    Borrower Details

    Account Name Borrower's account or contact name for whom this cash receipt is created.
    Default Payment Spread The default payment spread that you associated with this cash receipt.
    Cash Receipts and Payment Application
    Cash Receipt Id The unique identification of cash receipt.
    Receipt Status

    The status of the cash receipt. Options Supported:

    • CREATED: Cash receipt is just created.
    • CANCELED: Cash receipt is canceled.
    • APPLIED: All the amount of the cash receipt is used and the Unapplied Amountbecomes zero.
    • PARTIALLY APPLIED: Cash receipt amount is not fully used and the Unapplied Amount is not zero.
    • REVERSAL_STARTED: Reversal process of the cash receipt has just started. When you click Reverse Cash Receipt on the cash receipt page, a batch job in the background starts the reversal process. As soon as this batch job starts, the Receipt status changes to REVERSAL_STARTED.
    • REVERSED: After the cash receipt is completely reversed and the Unapplied Amount=Receipt Amount, then the status changes toREVERSED.
    • REFUND: Cash receipt is refunded.
    Receipt Amount The received amount or the payment amount.
    Unapplied Amount The unapplied (unallocated) amount that is used to make payments.

  3. Scroll down to the Receivables Due section, and select Auto Allocate or ManualAllocate.

    Note:

    For the next steps on the payment methodologies, refer to Payment methodologies.

  4. Click Apply.

    • The Payments section in the Payment Application page shows a list of corresponding LPTs and their contracts for which the payments are made through thisPayment Application.

    • In the Cash Receipt section, if the Unapplied Amount field is zero, then the Receipt Status is APPLIED, otherwise, the Receipt Status is PARTIALLYAPPLIED.

    • In the Payment Application section, if the LPT is Cleared, then the Receipt Application Status is APPLIED.

Payment Methodologies

The payment methodology that you select for a payment application decides the order in which the dues are satisfied. CL loan supports the following payment methodologies:

  • Create a Cash Receipt and Payment Application#Manual Allocate

  • Create a Cash Receipt and Payment Application#Auto Allocate

Manual Allocate 

You can manually allocate the amounts across the various loan receivables and loan non-receivables. However, it is not possible to allocate the amount toward a loan non-receivable without totally satisfying the balance of the receivables.

Steps

Perform the following step to manually allocate the amounts to the listed dues:

  • Use the Filter in the Manual Allocate section to search for the dues toward which you want to allocate the amounts, and then allocate the required amount to each.

    Note:

    To know about the fields of the Filter section, refer to the following table:

Field Name Description
Invoice / Contract Name The name of the contract.
Receivable Type The type of receivable.

Supported Options:

  • LEASE RECEIVABLES

  • FEES

  • TAX

  • LOAN_RECEIVABLES

  • LOAN_NON_RECEIVABLES

  • LOAN_WRITTEN_OFF
Date Range

This range is to list the receivables having a due date between the given range of due date between start date and end date.
Balance Amount Range The balance amount that the borrower has to pay on the due date. 

Auto Allocate

The system allocates the amounts using one of the following algorithms:

  • Create a Cash Receipt and Payment Application#Payment Spread

  • Create a Cash Receipt and Payment Application#Oldest First

Payment Spread

Using the Payment Spread algorithm, the order in which the dues are satisfied is as follows:

  1. Receivables across all the loans in the order of their due dates (oldest to newest).

  2. Non-receivables across all the loans in the order of their due dates (oldest to newest).

Example: Payment Spread

Suppose a cash receipt of $4000 is created which is auto allocated to two loans.  The allocation of the amounts is done in the order shown in the following table:

                              Loan 1

                                        Loan 2
Bills Bill Amount

Due Date

Allocated  Amount

 Bills Bill Amount  Due Date Allocated Amount

B2

500

2-Feb

5001

 B1 500 3-Feb 5002

B3

700

2-March

 700 4 B2 800 17-Feb 8003
B3

900

 2-April 900 6 B3 600 3 -Mar 5005

After paying all the bills (receivables) the remainder amount (4000- 3900) is used to satisfy the non-receivables.

Oldest First

Using the Oldest First algorithm, the order in which the dues are satisfied is as follows:

  1. Receivables across all the loans in the order of their maturity dates (oldest to newest).

  2. Non-receivables across all the loans in the order of their maturity dates (oldest to newest).

Example: Oldest First

Suppose a cash receipt of $9000 is created which is auto allocated to two loans.  The allocation of the amounts is done in the order shown in the following table:

                                                                  Loan 1                                                                 Loan 2
Bills Bill Amount

Due Date

 Loan Maturity Date

Allocated  Amount

 Bills Bill Amount  Due Date Loan Maturity Date Allocated Amount

B1

500

5-Mar

 5-November

5003

 B1 500 13-Jan 30-Apr 5001

B2

700

5-Apr

 700 5 B2 800 30-Feb 8002
B3 900 5-May 900 7 B3 600 13-Mar 5004
Non-receivables
Loan 1 Loan 2
35008 40006

Out of $9000, $3900 is used to satisfy the receivables of both the loans. Loan 2 has the older maturity date so all the receivables of Loan 2 are satisfied before the receivables of Loan 1.

The remainder amount ($9000-$3900) is used to satisfy the non-receivables of Loan 2, and then the non-receivables of Loan 1.

Note:

To know about the fields of the Auto Allocate section, refer to the following table: 

Field Name Description
Payment Spread All the receivables are paid before the non-receivables.
Oldest First The dues are paid in the order of their due date with the oldest due amount paid first.
Newest First The dues are paid in the order of their due date with the newest due amount paid first. This methodology is not supported in CL Loan.
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